VALUE CHAINS, VALUE NETWORKS AND SUPPLY CHAIN MANAGEMENT.pdfVIP

地址：上海市虹口区西江弯路 388 号凯德龙之梦 B 座 8 楼 电话：400-600-8011 网址： VALUE CHAINS, VALUE NETWORKS AND SUPPLY CHAIN MANAGEMENT This article considers writer Michael Porter’s value chain framework, which has been described as a powerful analysis tool for companies in strategic planning to create value. It also highlights the various definitions of supply chain management put forward by different writers Sections A4, E2 and E3 of the Syllabus and Study Guide relate to value chains and value networks, and Sections E2 and E3 of the Paper P3 Syllabus and Study Guiderelate to the supply chain with particular, but not exclusive, reference to the application of e-business. Value chains and supply chains have featured explicitly in the pilot paper, December 2007, December 2009 and June 2012 exams. In addition, value chains can often be used in position analysis. THE VALUE CHAIN AND VALUE NETWORKS Porter’s value chain displays groupings of all the activities that organisations carry out. The activities are divided into primary activities and secondary activities. All activities have costs and successful businesses organise and carry out their activities in such a way that value is added. It is the value added that allows revenues to exceed costs so that profits are made. To add value, the organisation must be doing more for its customers than simply carrying out the ‘face value’ of the activities, otherwise customers would presumably carry out the activities themselves. Customers either cannot carry out the activities at all, or cannot match costs, or don’t want to carry on the activities and so are willing to pay others to carry them out instead. For example: ? knowhow – suppliers often use knowhow that customers simply don’t have ? economies of scale – suppliers often produce efficiently in huge volumes with each customer buying only a small proportion. Suppliers’ economies of scale simply cannot be replicated by each customer ? risk – suppliers might shoulder